The Tamil Nadu Authority for Advance Rulings (AAR) addressed a query from M/s Amman Blue Metals regarding the applicability of the reverse charge mechanism (RCM) under the Goods and Services Tax (GST) framework. The applicant, engaged in trading construction materials like M-Sand, P-Sand, Blue Metal, Boulders, and Bricks, sought clarity on whether purchases from unregistered suppliers would attract GST liability under RCM as per Sections 9(3) and 9(4) of the Central Goods and Services Tax Act.

The AAR examined whether these materials were part of the notified supplies under Section 9(3) or if the amended Section 9(4) applied, which typically concerns supplies to promoters for construction purposes. The applicant clarified their role as a trader, not as a promoter or developer in the real estate sector. Upon review, the Authority determined that the goods in question were not listed under the notified supplies requiring reverse charge under Section 9(3). Furthermore, the amended Section 9(4) did not extend to the applicant's transactions as they do not involve supplies to promoters for construction.

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Consequently, the AAR ruled that purchases of M-Sand, P-Sand, Blue Metal, Boulders, and Bricks from unregistered suppliers by the applicant do not attract GST under the reverse charge mechanism. As a result, no liability arises under either Section 9(3) or Section 9(4) for these transactions, providing clarity and relief to the applicant in their operations. This decision highlights the specific applicability of RCM in the context of construction material trading.